246 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES
- Distinction must be made between a simple direction to sell or purchase and a direction, the execution of which, is made dependent on the request or consent of some other person.
In such a case, whether there will be conversion or not, rests upon the construction of the document :
(a) If the intention of the clause is to enable the person named to enforce the obligation to convert, then there will be conversion.
(b) If the intention of the clause is to control the operation of the direction by making it subject to application, then there will be no conversion until such application is made.
- Distinction must be made between the power to convert and direction to convert :
(1892) 1 Ch. 279.
(1910) 1 Ch. 750.
A mere power to convert is not imperative direction and therefore, there will be no conversion, where there is mere power.
Illus. :
A borrowed £ 300 from B on a mortgage of A’s property and gave B power of sale by the terms of which the surplus proceeds of sale were to be paid to A, his executors and administrators.
A died intestate, and after A’s death B sold the estate and there were surplus sale proceeds. To whom would the surplus go ?
As this was not a direction to sell, the property would devolve according to its actual state at the death of A. At the death of A it was Realty, therefore, the heir was entitled to it. If the sale had taken place during the life-time of A, at the death of A it would be personality and would have, therefore, gone to the next-of-kin.
II. T IME FROM WHICH CONVERSION BY DIRECTION TAKES .
This varies according as the direction is contained in a will or in a deed.
If the direction is contained in a will, conversion will take place as from the death of the testator.
If the direction is contained in a deed, conversion will take place as from the date of the execution of the deed—notwithstand